Americans' monthly debt payments surge since the pandemic
Swollen balances and sky-high interest rates contributing to jump in monthly debt payments
Inflation hurts consumers, no question about it: Bank of America CEO Brian Moynihan
Bank of America CEO and Chairman Brian Moynihan discusses the Feds rate hikes, 2024 consumer strength and big bank regulation.
The average amount Americans shell out just to cover their debt payments has surged by $350 per month over a handful of years, with high prices, swelling balances and sky-high interest payments all contributing to the jump.
A new report by LendingTree found consumers pay an average of $1,583 to service their debts each month, up from $1,233 when they studied the data in 2020.
Homes in Rocklin, California, on Tuesday, Dec. 6, 2022. Home prices have surged since the pandemic hit in 2020. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
Unsurprisingly, home mortgages make up the greatest amount of debt, with homeowners paying $1,855 a month on average. The average monthly car payment is $690, the analysis found, and personal loans are the third-highest monthly payment, averaging $517.
CREDIT CARD DELINQUENCIES SURGE AS AMERICANS BATTLE HIGH INFLATION, INTEREST RATES
Student loan borrowers have an average payment of $307, and credit card holders' minimum payments average $272.
LendingTree acknowledged the average amount most Americans actually pay is probably even higher than their study found, because the vast majority of credit card holders pay more than the minimum payment. (Simon Dawson/Bloomberg via Getty Images / Getty Images)
Matt Schulz, LendingTree's chief credit analyst, told FOX Business that the true amount consumers are paying each month to stay on top of their debt is actually probably higher than the study's numbers show.
NEARLY 30% OF AMERICANS BEHIND ON DEBT PAYMENTS IN LARGEST METROS, STUDY FINDS
"These numbers are really high, but for many Americans, the reality is likely even worse," he said. "That's because when it comes to credit cards, the calculations in our report only include minimum payments. The vast majority of credit cardholders pay well more than the minimum each month, so it's likely that most Americans are paying significantly more than what we list in the report."
It will take a long time for consumers to recover from ‘worst bout of price inflation since the early 1980s’: John Lonski
The Lonski Group founder John Lonski, UBS Wealth Management Senior Vice President Brenda O’Connor Juanas and University of Akron Endowment Fund Chairman Dennis Gartman discuss their outlooks for the 2024 economy on ‘Mornings with Maria.’
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Schulz pointed to a Consumer Financial Protection Bureau report from last year showing that just 13% of general purpose and 17% of private label account holders pay only the minimum payment due each month.